Varsav Game Studios Q3 2025: Barkour-Funded Growth with a Small Net Loss

Quarter in brief

Varsav Game Studios S.A. closed the third quarter of 2025 as a studio in full transition. The period was dominated by production work on its flagship title BARKOUR, ongoing monetisation of Bee Simulator and Bee Simulator: The Hive, as well as growing momentum at subsidiary Mooneaters S.A. with the Everdream universe.

Financially, the group delivered higher quarterly revenues and a positive operating result, but reported a small net loss for the first nine months of 2025, driven mainly by the revaluation of financial assets. The balance sheet expanded markedly, reflecting both the build-up of development inventories and the recognition of a sizeable revenue-sharing deal for BARKOUR as a liability.

Financial results and profitability

Revenue trends

The headline revenue data show a relatively stable top line with improving quarterly dynamics:

For 1 January–30 September 2025, net revenues from sales and equivalents reached PLN 2.82m, slightly below the PLN 2.88m recorded in the same period of 2024.
In Q3 2025 alone (1 July–30 September), revenues rose to PLN 1.24m, up from PLN 1.11m in Q3 2024, indicating year-on-year growth of around 12%.

Within Q3 2025 revenue:

Approximately PLN 250k came from Bee Simulator and Bee Simulator: The Hive under the cooperation with new publisher Untold Tales S.A.
The Everdream Valley project continued to generate stable income for Mooneaters S.A. and Varsav, contributing around USD 7.5k to the parent company.
Giants Uprising delivered only a marginal contribution of about USD 250.

This mix confirms the ongoing importance of the Bee franchise and the emerging, but still smaller, contribution of the Everdream ecosystem.

Profitability

Despite modest year-on-year pressure on revenues, Varsav maintained a positive operating result:

Operating profit for 9M 2025 was PLN 426.1k, compared with PLN 576.3k in the same period of 2024.
Operating profit in Q3 2025 reached PLN 74.9k, versus PLN 133.7k in Q3 2024.

Below the operating line, the picture weakens:

Profit before tax for 9M 2025 was negative at PLN –25.5k (9M 2024: PLN 828.6k).
Net profit for 9M 2025 amounted to a loss of PLN –34.9k, versus a profit of PLN 828.6k a year earlier.
In Q3 2025 alone, the group generated a small net profit of PLN 25.1k, compared with PLN 806.0k in Q3 2024.

Management attributes the full-period net loss mainly to the revaluation of financial assets rather than to an underlying deterioration in the core operating business. Still, the comparison with the previous year underlines how much the earnings profile now depends on investment and financing effects.

Balance sheet and capital structure

Varsav’s balance sheet has grown significantly as the group’s development ambitions expanded:

Total assets at 30 September 2025 were PLN 19.54m, up from PLN 15.73m a year earlier.
Non-current assets amounted to PLN 8.48m, dominated by long-term financial assets (stakes in subsidiaries and associates) of over PLN 8.0m.
Current assets reached PLN 11.06m, compared with PLN 8.90m at the end of Q3 2024.

The most notable item is inventories, which reflect capitalised development expenditures:

Inventories rose to PLN 9.72m from around PLN 7.23m a year before, driven by work in progress on BARKOUR, Everdream Village and other projects.

On the equity and liabilities side:

Equity totalled PLN 9.24m (down from PLN 10.53m), mainly due to the year-to-date net loss and changes in reserves.
Liabilities and provisions increased sharply to PLN 10.30m from PLN 5.19m.

A key driver of the rising liabilities is the revenue-sharing agreement for BARKOUR:

Varsav signed a revenue participation agreement with a partner for EUR 0.5m, linked to future game revenues.
Out of caution, the entire amount has been classified as a short-term liability until the game’s release.
This conservative treatment boosts liabilities and temporarily depresses equity, even though the funds directly support completion of the project.

The resulting capital structure is one of a sizeable development-focused asset base funded by a mix of equity, revenue-sharing instruments and more traditional payables and provisions.

Cash flows and liquidity

The cash flow statement shows the financial implications of Varsav’s investment-heavy strategy:

Net cash used in operating activities in 9M 2025 was PLN –1.26m, slightly worse than PLN –1.12m a year earlier. Negative operating cash reflects the build-up of inventories and working-capital swings, rather than material operating losses.
Net cash from investing activities was positive at PLN 191.0k (9M 2024: PLN 935.1k), suggesting fewer disposals or repayments in the current period compared with the previous year’s one-off inflows.
Net cash from financing activities surged to PLN 1.23m (9M 2024: PLN 265.9k), thanks to new financing arrangements, including the BARKOUR revenue-sharing structure and other capital inflows.

Overall, total net cash flow for the first nine months of 2025 was positive at PLN 164.8k. Cash and cash equivalents increased from PLN 179.6k at the start of the year to PLN 344.4k at the end of September.

Liquidity is therefore improving in absolute terms but remains tight relative to the scale of the development pipeline and the level of short-term obligations. Varsav continues to rely on external capital to fund its growth.

Operational developments and project pipeline

Bee Simulator and Bee Simulator: The Hive

The Bee franchise remains a cornerstone of Varsav’s commercial performance:

Cooperation with new publisher Untold Tales S.A. delivered PLN 250k of revenue from Bee Simulator in Q3 2025 alone.
Bee Simulator: The Hive launched on PC on 4 August 2025, with console versions scheduled for release in Q4 2025.
Porting and marketing costs related to the console launch still weighed on results in the reporting period, but management expects them to support revenue growth in subsequent quarters.

Barkour: flagship title in development

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BARKOUR is clearly the key strategic project:

The entire production team remains focused on development of the title, featuring a special-agent dog as the main character.
In Q3 2025 Varsav signed a pivotal revenue-sharing agreement for EUR 0.5m, securing funds for the final development phase.
During the quarter the studio released an official gameplay trailer and announced a public demo for early Q4 2025.
By the report date, around 8.5k players had tried the demo and the Steam wishlist count reached approximately 35k.
The game was showcased at Gamescom and PAX West, receiving especially strong feedback from younger players (10–15 years old) and fans of action, stealth and platformers.

These indicators suggest that BARKOUR has the potential to become a flagship IP, though the commercial outcome will depend on the quality of the final release and the strength of launch marketing.

Mooneaters and the Everdream universe

Subsidiary Mooneaters S.A. continues to build out its Everdream portfolio:

Everdream Valley remained a stable revenue contributor, and the Family Time DLC for console versions launched in Q3 2025, marking the end of the game’s active development cycle.
The focus is now Everdream Village. A demo released in Q3 helped push the Steam wishlist count to about 90k by the report date.
Feedback from Gamescom and the demo emphasised the game’s unique visual style and the depth of its systems, including relationships, personalisation, animal cross-breeding and building mechanics.

Together, BARKOUR and Everdream Village represent the centre of Varsav’s future growth narrative, supported by ongoing monetisation of the Bee and Everdream back catalogues.

Risks and key sensitivities

Varsav’s Q3 2025 profile comes with a set of notable risks:

Liquidity and funding risk
Negative operating cash flows and a relatively low cash balance mean the company remains dependent on external financing, including revenue-sharing arrangements and other debt-like instruments.
Project concentration risk
A large share of assets is tied up in a few key titles: BARKOUR, Everdream Village and the Bee franchise. Underperformance of any of these could force write-downs and materially impact results.
Execution and timing risk
High expectations from trade shows and community engagement raise the stakes for BARKOUR. Delays, quality issues or weaker-than-expected post-launch reception could negatively affect both revenues and relationships with partners.
Valuation risk on financial assets
The 9M 2025 net loss already reflects negative effects from the revaluation of financial assets. Future changes in the value of stakes in subsidiaries and associates may introduce additional earnings volatility.

Despite these factors, the management board has prepared the financial statements under the going-concern assumption, indicating confidence in the sufficiency of current funding and the commercial outlook for the pipeline.

Outlook and conclusion

Varsav Game Studios emerges from Q3 2025 as a studio with:

Growing quarterly revenues and a still-positive operating margin.
A small net loss at the nine-month level, driven more by financial revaluations than by underlying operations.
A substantially enlarged asset base and higher liabilities, reflecting heavy investment in core projects and revenue-share financing.

The coming 12–18 months will be crucial. Success of Bee Simulator: The Hive on consoles, the eventual launch and performance of BARKOUR, and the progression of Everdream Village will determine whether Varsav can convert its expanded development base into durable, high-margin digital revenues and gradually rebuild its equity buffer.

For investors, the story is one of controlled but meaningful risk: operational fundamentals remain intact, but the company is now highly geared to the commercial fate of a small number of ambitious titles.

Feel free to explore the company’s full profile on our platform: VARSAV Game Studios